The main headlines that the global financial media paid attention to last night and this morning include:

Two Federal Reserve governors believe that interest rates will remain at a high level in the face of slow progress in inflation

Two US Federal Reserve (Federal Reserve) governors reiterated on Monday that they will keep current interest rates unchanged until there is more evidence that inflation is falling. This is the latest central bank official to emphasize that interest rates will be kept high for a longer period of time.

Federal Reserve Vice Chairman Philip Jefferson (Philip Jefferson) and Federal Reserve Vice Chairman Michael Barr (Michael Barr) pointed out that the disappointing inflation in the first quarter was a reason to keep interest rates unchanged, providing more time for restrictive policies to take effect.

“I think we are in a good position to maintain stability and keep a close eye on the development of the situation,” Barr said in a speech at the Atlanta Federal Reserve meeting in Atlanta, Florida.

Saudi Arabia seeks cooperation with Boeing and Airbus on aircraft metals

Saudi Arabia said it is cooperating with top aircraft manufacturers Boeing and Airbus to seek approval for its aluminum and titanium to be used in both companies' aircraft as part of boosting more manufacturing in Saudi Arabia.

Obtaining certification may help aircraft manufacturers overcome supply barriers, including difficulties in obtaining some raw materials. According to the Saudi General Authority of Civil Aviation (GACA), Saudi Arabia is also discussing the production of more aircraft parts locally.

“Boeing, Airbus, and Brazilian Aeronautical Industries (ERJ.US) have all expressed interest in establishing long-term facilities with certain components in Saudi Arabia,” GACA Chairman Abdulaziz Al-Duailej said in an interview before the opening of the Future Aviation Forum in Riyadh.

According to information, Saudi Arabia is striving to become a new metal and mining center to find ways to get rid of its dependence on oil and diversify its economy. As Saudi Arabia is about to become the main source of new aircraft orders, Saudi Arabia has begun negotiations with aviation giants, hoping to be part of their metal purchases. Saudi Crown Prince Mohammed bin Salman is ambitious to develop the country's transportation industry, including overhauling the country's aviation industry and building new airlines.

Bank of America anticipates interest rate cuts are still far away

On the 20th, Beijing time, Bank of America global economist Claudio Irigoyen said on Monday that despite encouraging April inflation data, investors still have hopes that the Federal Reserve will cut interest rates several times in 2024, and this hope is wrong.

Claudio Irigoyen said, “Currently, the market expects the Fed to cut interest rates by about 50 basis points this year, but they are likely to be disappointed.”

He added, “The inflation rate for the first quarter is too high, and the data released once should not bring much comfort, especially if its annualized rate is far higher than the Federal Reserve's target. Furthermore, the US economy remains stable, including spending on services, the labor market is still tight, the supply side is likely to subside, and the presidential election is approaching.”

Tesla's internal chaos, workers await next round of layoffs

Tesla CEO Elon Musk (Elon Musk) plans to cut employees by at least 10%. The plan has been in place for over a month, but he hasn't finished it yet. That means anxious employees wake up every day to check their information and wonder if they still have jobs. According to people familiar with the matter, rolling layoffs are likely to continue until at least June. These persons are not authorized to speak publicly about layoffs.

Musk hasn't given employees a “clear” signal that the layoffs are over, causing colleagues to play dark jokes with each other that are disturbing and insomniating. An employee described the atmosphere as similar to the hit TV series “Squid Game” (Squid Game), where characters facing financial difficulties compete in a deadly race to survive.

This wave of layoffs has already affected thousands of people in sales, human resources, and almost the entire supercharger department, and is expected to have a widespread impact on Tesla. At the beginning of this year, Tesla had more than 140,000 employees. According to reports last month, Musk has already pushed for 20% layoffs.

Rich Otto (Rich Otto), who stepped down as Tesla's product launch director this month, said in a LinkedIn (LinkedIn) post: “Great companies are made of great people and great products, and the latter is only possible if employees thrive.” He deleted the post after it was covered by the media. “Recent layoffs have shaken the company's morale and unbalanced this harmony, making it difficult to see long-term development.”

Bank of England Vice President Broadbent said that UK interest rates may be cut this summer

Bank of England Vice President Ben Broadbent (Ben Broadbent) said that if the second round of inflationary pressure falls as expected, the Bank of England will be able to cut interest rates “sometime in the summer.”

In his last speech after 13 years at the Bank of England, Broadbent hinted that the decision to cut interest rates by 5.25% from the current 16-year high will depend on the stickiness of wage growth and whether companies pass on higher wage costs to prices.

The Bank of England's official in charge of monetary policy said in a speech that the faster actual wages make up for losses during the inflationary shock, the faster the “normal” return will be, and the faster the second round of inflationary pressure will subside.

Earlier this month, Bank of England President Bailey hinted that the first 25 basis point rate cut could be held as early as June 20. This is the next meeting and the last before Broad Bent leaves office. Official data released on Wednesday is expected to show that the inflation rate will fall close to the 2% target set in April. The Bank of England will also release a set of inflation and salary data before the next vote.

J.P. Morgan CEO Dimon said the bank's successor plan is progressing smoothly

J.P. Morgan CEO Jamie Dimon has long joked that no matter when you ask him, he still has five years to retire. But he gave a different answer on Monday.

In response to a question about how long he plans to be CEO, Dimon told shareholders that the schedule “is no longer five years.” On the company's Investor Day, he said the plan to succeed the nation's largest bank “is progressing smoothly.”

After Damon, the question of who is in charge of the company looms over the entire industry. Dimon transferred some of his senior assistants to new senior positions earlier this year to give them more experience in managing the company as he prepares potential successors.

This transfer has enabled Jenn Piepszak and Troy Rohrbaugh to serve as co-CEOs of the expanded commercial and investment banking business, and Marianne Lake, who has co-led consumer and community banking with Piepszak since 2021, will take the lead in this department and manage more businesses.